The 20X8 comparative balance sheet and income statement of 4 Seasons Supply Corp. follow. 4 Seasons had no noncash investing and financing transactions during 20X8. During the year, there were no sales of land or equipment, no issuance of notes payable, no retirements of stock, and no treasury stock transactions.

Required

1. Prepare the 20X8 statement of cash flows, formatting operating activities by using the indirect method.

Transcribed Image Text:

4 Season Supply Corp Comparative Balance Sheet Increase December 31, 20X8 20X7 (Decrease Current a ssets: Cash and cash equivalents17,600 Accounts receivable Inventories Prepaid expens 5,300 $12,300 27,200 27,600 (400) 3,600 87200 (3,600) 600 2,500 1,900 Plant assets: Land Equipment,net 89,000 60,000 29,000 4,100 $273,400 $231,400 $42,000 53,500 49,400 Total assets Current liabilities: Accounts payable35,800 33,700 2,100 Salary payable 3,100 6,600 (3,500) 22,600 23,700 1,100) 75,000 100,000 (25,000) 88,300 64,700 23,600 Long-term liabilities: Notes paya ble Stockholders' equity: Common stock, no-par. Retained earnings.70000 48,600 2,700 45,900 Total liabilities and stockholders' equity $273,400 $231,400 42,000 4 Season Supply Corp. Income Statement for 20Xs Revenues: Sales revenue $228,700 Expenses: Cost of goods sold.$70,600 expense... ....27,800 Other operating expense 11,600 Interest expense Income tax expense. Total expenses 153,600 $ 75,100